Underlying futures contract

Underlying futures contract

Underlying Futures Contract

In an option on a futures contract, the futures contract. The underlying futures contract supports the option; that is, if the option is exercised, the futures contract is executed. For example, an investor may buy a call giving him/her the right to buy a pork belly if the option is exercised. In this case, the pork belly is the underlying futures contract.

Assuming that all options are carried to expiration (no early exercise), a trader who buys the call and sells the put can always expect to end up with a long position in the underlying futures contract at expiration.

All the underlying Indices are rolling Indices, each of which rolls on a daily basis according to a pre-determined schedule that has the effect of keeping constant the weighted average maturity of the underlying futures contracts.

Teucrium designs investment vehicles that include transparency via the intraday indicative value (IIV), a publicly published valuation of the fund's holdings provided by the NYSE, updated every 15 seconds as the underlying futures contracts trade throughout the day.

Adjusted Margin is a financial measure intended to approximate the margin results that would have been reported in a particular period had the Company's underlying futures contracts related to its fixed price and price cap contracts qualified for hedge accounting under SFAS No.

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